Semlex Europe SA issued the following announcement on September 30, 2017.

Semlex Europe SA regrets to announce that it ceased all activities on 30 September 2017 and no longer has any responsibility for the production of identification documents in the Republic of Mozambique. All equipment, documents and raw materials, including offices, were delivered to the competent Mozambican authorities.

The Mozambican government signed a 10-year BOT (Build, Operate, Transfer) contract with Semlex Europa SA in 2009 to provide secure solutions for the identification of citizens, using it as a complete resource for biometrics, namely identity cards , travel documents, DIRE’s (Foreign Resident Identification Document) and border visas.

The Mozambican authorities unilaterally terminated the contract in May 2017 in an unjustified and illegal manner. Semlex Europe SA was obliged to continue to produce the identification documents within the deadlines, without any remuneration from the Mozambican authorities, in addition to the existing high debt amounting to some US$53 million.

From the financial point of view, it became unsustainable for Semlex Europe SA to continue its activities and it therefore informed the Mozambican authorities in a timely manner that it would cease activities on 30 September 2017.

In addition to the installation and management of the document production process, Semlex Europa SA was responsible for providing infrastructure at the main access points to the country.

Semlex Europe SA continues to insist that an audit is carried out by an independent entity of recognised and proven technical and professional merit in the area, which demand has always been denied by the Mozambican authorities.

Semlex Europe SA reaffirms that it has always worked as a partner of the Mozambican government and at no time has taken a leadership position in this project, in which its responsibility begins in the reception of all information to be worked and ends in the production of the documents within 72 hours for delivery.

What is BOT?

Under the build, operate, transfer (BOT) contract, Semlex Europe SA makes all necessary investment on behalf of the client to create the project, supports all project operating costs and performs project maintenance (with the exception of certain costs agreed between the two parties, such as the availability of state officials).

In return, Semlex Europe SA pays itself with part of the proceeds from the sale of documents requested by the competent authorities. The other part of the revenue is for the state. According to this formula, the state not only does not invest or invests very little, but it also receives part of the revenue.

Semlex Europe SA provides a reliable identification system and highly protected official documents thanks to the integration of biometric and fiduciary techniques and security systems, in an integration system responding to the needs and expectations of increasing levels of security.